7. The president of a university would like to estimate the proportion of the student population that owns a personal computer. In a sample of 500 students, 420 own a personal computer.

7.1 Find the 99% confidence interval for the proportion of the student population who own a personal computer?
7.2 Find the 95% confidence interval for the proportion of the student population who own a personal computer?
7.3 Find the 90% confidence interval for the proportion of the student population who own a personal computer?

1 answer

To find confidence intervals for the proportion of students who own a personal computer, we can use the formula for the confidence interval of a proportion:

\[ \hat{p} \pm z \sqrt{\frac{\hat{p}(1 - \hat{p})}{n}} \]

where:

  • \(\hat{p}\) is the sample proportion
  • \(z\) is the z-score corresponding to the desired confidence level
  • \(n\) is the sample size

Given:

  • Sample size \(n = 500\)
  • Number of students who own a personal computer = 420
  • Sample proportion \(\hat{p} = \frac{420}{500} = 0.84\)

7.1 Find the 99% confidence interval

For a 99% confidence level, the z-score (\(z\)) is approximately 2.576.

Calculating the standard error:

\[ SE = \sqrt{\frac{\hat{p}(1 - \hat{p})}{n}} = \sqrt{\frac{0.84 \times (1 - 0.84)}{500}} = \sqrt{\frac{0.84 \times 0.16}{500}} = \sqrt{\frac{0.1344}{500}} = \sqrt{0.0002688} \approx 0.0164 \]

Now, calculating the confidence interval:

\[ \text{Margin of Error} = z \times SE = 2.576 \times 0.0164 \approx 0.0423 \] \[ \text{99% CI} = 0.84 \pm 0.0423 = (0.7977, 0.8823) \]

7.2 Find the 95% confidence interval

For a 95% confidence level, the z-score (\(z\)) is approximately 1.96.

Calculating the standard error (same as above, since it depends on \(n\) and \(\hat{p}\)):

Using \(SE \approx 0.0164\) (as previously calculated):

\[ \text{Margin of Error} = z \times SE = 1.96 \times 0.0164 \approx 0.0322 \] \[ \text{95% CI} = 0.84 \pm 0.0322 = (0.8078, 0.8722) \]

7.3 Find the 90% confidence interval

For a 90% confidence level, the z-score (\(z\)) is approximately 1.645.

Using \(SE \approx 0.0164\):

\[ \text{Margin of Error} = z \times SE = 1.645 \times 0.0164 \approx 0.0269 \] \[ \text{90% CI} = 0.84 \pm 0.0269 = (0.8131, 0.8669) \]

Summary of Confidence Intervals:

  • 99% Confidence Interval: \((0.7977, 0.8823)\)
  • 95% Confidence Interval: \((0.8078, 0.8722)\)
  • 90% Confidence Interval: \((0.8131, 0.8669)\)